Honduras rejects call to restore ousted president

Tegucigalpa: Honduras' refusal to restore ousted President Manuel Zelaya, despite an appeal by the top envoy for the Americas, has put the impoverished nation on a collision course with the world community that could lead to its isolation.

Honduras said it would no longer recognise the Organisation of American States (OAS) charter, claiming the diplomatic body attempted to impose "unilateral and indignant resolutions" on the new government, which took power a week ago in a military-backed coup and forced Zelaya into exile.

OAS chief Jose Miguel Insulza had demanded Zelaya be restored to office, and was on Saturday deliberating on whether to suspend the Central American nation's membership. But Honduras' interim President, Roberto Micheletti, said "the OAS is a political organisation, not a court, and it can't judge us," according to a note to Insulza read on Honduras' television on Friday night.

The move means Honduras, one of the poorest countries in the Americas, will leave the OAS and will not face sanctions by the organisation, though it would not prevent other groups and countries from suspending aid and loans.

Nations around the world have promised to shun Micheletti. Neighbouring countries have imposed trade blockades, the United States has halted joint military operations and European Union ambassadors have abandoned the Honduran capital.

The World Bank already has suspended $200 million (Dh734.5 million) in financing, and the Inter-American Development Bank has put $450 million on hold.

Insulza, who was in Tegulcigalpa on Friday, met with the country's Supreme Court officials, attorney general and other political figures.

"We wanted to ask that this situation be reversed," Insulza told reporters after the meeting. "Unfortunately, one must say that there appears to be no willingness to do this."

Micheletti's interim government - which has blamed Venezuelan President Hugo Chavez for stoking the crisis - appeared ready to settle in for the long haul.

"If Honduras is out of the OAS, well, we will be isolated ... little by little we will regain the confidence of other nations, because we are a valiant people who have said 'enough' to Chavez," said Micheletti's assistant foreign minister, Martha Lorena Alvarado.

Micheletti led a raucous chant of 'Democracy!' before a huge crowd on Friday waving blue-and-white Honduran flags in front of the palace he has occupied since Zelaya was seized by soldiers on June 28 and flown into exile.

"I am the president of all Hondurans," he proclaimed, as police helicopters circled over the heavily guarded palace.